Updated almost 5 years ago on .
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Duplex Rent to Own......
I have decided to sell my duplex but before even listing it because I am getting some minor touch up and repairs done, I have been approach with an offer.
The asking price I was going to start with was $105,000. This individual has offered a $50k down payment and I hold the note for the remaining balance of $55k at 7%. There is an existing balance with the lender for about $44k. I asked how long they need the note held for and am currently waiting on that response. The question I have is, can I hold the note since I still owe the lender? They have agreed not to change the title until it is paid off in X amount of years.
If I do the rent the whole duplex to them, I was thinking of $1100/$1200 per month and it easily rents for $1850 combined. The power bill and water bill would be their responsibility along with any repairs going forward.
I am going to have them pay the agent their commission so it will not come out of my cut.
While I hold the note I capitalize on the tax benefits as well.
What am I missing, this seems like a no brainer right? What implications am I missing?